Sagarmatha Insurance distributing 86% bonus leaving tax liability on shareholders; Inconvenience in procedure sheds light in an area Nepali Capital Market can improve on

Wed, Jul 10, 2019 12:33 PM on Dividend, Bonus & Rights, Latest,

Sagarmatha Insurance Company (SIC) urges its shareholders to pay tax on the 86% bonus share. SIC is distributing 86% bonus share from the profit of fiscal year 2074/75.

Shareholders holding the share up to Jestha 31, 2076 are getting the bonus shares. The shareholders need to present the deposit slip of tax paid to the head office of SIC or Global IME capital, the share registrar of SIC.

The shareholders are requested to deposit the tax amount in A/c no. 0101010005264 of Global IME bank. Shareholders need to mention DEMAT account number, name and contact number at deposit slip.

Of those shareholders who have used their shares as collateral for loan will be receiving bonus only after the shares are released. In addition, the company has also requested shareholders to dematerialize their shares to get their bonus share as soon as possible.

The detail of tax is available in company website and the website of Global IME capital

Most companies provide cash dividend worth the amount required for tax purpose for the ease of shareholders. However, in this case given the huge amount of bonus, the shareholders are required to pay the taxes on their own. In this case attention must be drawn that, both our primary and secondary market has entered the digital era and similarly, this should also be digitalized.

With the NEPSE online trading system (NOTS), C-ASBA and Mero Share, people are now investing in capital market from all parts of the country and without doubt the shareholders of SIC are also from diverse region and that creates a special problem in this case as the voucher is to be submitted either at SIC or Global IME Capital. If SEBON or the concerned Share Registrar Company can come up with a solution, that will add one more brick to the Nepali Capital Market's development.